HCLTech Secures $1.81 Billion in Q1 Deals, Sets Cautious FY26 Growth Outlook

HCL Technologies has kicked off FY26 with a robust total contract value (TCV) of $1.81 billion in new deal wins for Q1, signaling continued client confidence despite macroeconomic headwinds. The company also issued its full-year guidance, projecting modest revenue growth and stable margins.

 

Key highlights:

 

- HCLTech’s Q1 TCV of $1.81 billion reflects strong traction in digital transformation, cloud services, and GenAI-led solutions.

- The company expects FY26 revenue growth between 3–5% year-on-year in constant currency terms, indicating cautious optimism amid global demand volatility.

- EBIT margin guidance for FY26 is pegged between 17–18%, slightly lower than last year’s range, factoring in wage hikes and pricing pressures.

 

Strategic context:

- The deal pipeline includes a mix of small and mid-sized contracts, with clients favoring modular, agile solutions over mega-deals.

- HCLTech continues to expand its delivery footprint, recently opening a 320,000 sq.ft. center in Hyderabad with capacity for 5,000 employees.

- The company is doubling down on generative AI, integrating it into client offerings across BFSI, life sciences, and hi-tech verticals.

 

Market sentiment:

- Analysts view the Q1 deal wins as a positive indicator for revenue visibility, though margin pressures may persist due to rising employee costs and discretionary spend slowdowns.

- The company’s focus on operational efficiency and strategic hiring is expected to support long-term resilience.
 

With a solid start to FY26, HCLTech is navigating the evolving IT landscape with a balanced approach to growth and profitability.

 

Sources: Economic Times, ETMarkets, Bloomberg.